lundi 1 juillet 2019

In Any Divorce Finance Plays A Big Role

By Mark Johnson


The fact that there are dozens of courts and many thousands of lawyers dealing with nothing but divorces are a clear indication of just how prevalent they are. A married couple has a legal agreement and dissolving the marriage is not always an easy task. Many decisions have to be made and if the marriage produced children, their interests must be the highest priority. Getting divorced can be very expensive and numerous couples find that when getting a divorce finance quickly become a big issue.

It is important to realize from the outset that divorces almost always leave both partners worse off financially. In many cases the family home and other assets have to be sold, very often in unfavorable economic conditions. The liquidation of savings, bonds and stock will involve a big administrative fee and sometimes a penalty. The cost of legal representation can also become a huge financial burden.

Divorcing couple all too often act rashly and impulsively but if they try to be reasonable, to communicate and to negotiate they can do much to limit the cost of getting divorced. Lawyers charge for their time and couples that can privately discuss matters and come to an agreement will have a much lower legal fee to pay. They can even use a specially licensed counselor that charges a fraction of that demanded by lawyers.

The costliest divorces are those that are contested in open court. Each partner has a lawyer and negotiations are often protracted, eventually adding up to an astronomical legal services bill. In these cases the lawyers are the only winners. Couples that can no longer communicate in a civil manner can nevertheless save a lot of money by using a go between such as a trained counselor.

Couples that need money to pay for their divorces are better off selling at least some of the assets rather than to make use of financing companies that specialize in this type of loan. They charge exorbitant interest rates and up to fifteen per cent of the loan amount as a non refundable administration fee. The benefit that the offer is that they process applications very quickly.

Cash strapped couples that do not have assets to sell in order to raise money to pay for their divorces often have no option other than to apply for a loan. It is best, however, to try an obtain such a loan through traditional channels rather than from companies specializing in quick loans. It may be possible to get a loan against a pension fund or long standing insurance policies.

One does not want to plan for getting divorced when one marries but many insurance companies offer affordable policies that will cover the cost of divorce, among other things. These policies also make provision for other eventualities that will incur legal fees. Many financial experts agree that it is sensible to plan for the possibility of being obliged to pay high legal fees.

Divorces can be very traumatic and they have an impact on everyone around the divorcing couple. It is important, however, not to act rashly and to try everything possible to limit the cost of dissolving the marriage. Amicable divorces between two sensible and reasonable people are much cheaper and will not leave them financially crippled.




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